Does the presence of three or more female directors associate with corporate recognition?

Abstract

Purpose The purpose of this study is to extend Landry et al.’s (2016) work and examines the possible association between corporations having three or more female directors and these companies being features on corporate recognition lists. Design/methodology/approach This study examines a sample of 335 corporations ranked as Fortune 500 corporations in the period 2013–2019. The authors test for the association between the percent of corporations that had three or more female directors and the percent of these corporations on external recognition lists. Findings The data indicate that the percent of corporations with three or more female directors more than doubled between 2013 and 2019; this change was accompanied by an increase in the percent of presence of these companies in corporate recognition lists. The percent of corporations that had three or more female directors was significantly associated with the percent of these corporations on external recognition lists. Research limitations/implications The first is the sample selection process; this study used only publicly traded corporations that were included in the Fortune 500 between 2013 through 2019. The second limitation is that this study did not include data on board members considered minorities. Practical implications The findings imply that there is a strong link between gender diversity on boards and being featured on corporate recognition lists, which means that firms who care about corporate social responsibility-related works, and more instrumentally, care about being on such lists should reconsider the gender balance on their boards. Originality/value This study extends this work for a time period in which the number of corporations with three or more female directors has significantly increased.

Board gender diversity and cost of debt financing: Evidence from Latin American and the Caribbean firms

“…The second trend is associated with the impact of women on boards on earnings, risk, and management (Bogdan et al 2022;Elzahar et al 2022;Guizani and Abdalkrim, 2022;Huang and Mirza, 2023;Huang and Kisgen, 2013;Levi et al 2014;Ma et al 2022;Mensah and Boachie, 2023;Neuberger et al 2023;Pucheta-Martínez et al 2016, 2018Pucheta-Martínez and Bel-Oms, 2019;Sattar et al 2022;Shauki and Oktavini, 2022;Zalata et al 2022). For example, Pucheta-Martínez et al (2016, 2018 revealed that having female institutional directors on boards can increase firm value, but if their representation exceeds a particular threshold, it may lead to a decline in firm performance.…”

“…2022; Mensah and Boachie, 2023; Neuberger et al. 2023; Pucheta‐Martínez et al. 2016, 2018; Pucheta‐Martínez and Bel‐Oms, 2019; Sattar et al.…”